gold investment symposium 2012 - james gardiner - mks capital
TRANSCRIPT
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INTEGRATED INTERNATIONAL PRECIOUS METALS ORGANISATION
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How Gold Producers can maximise
the Revenue Side of their business
MKS’ position in the Gold Market
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INTEGRATED INTERNATIONAL PRECIOUS METALS ORGANISATION
MKS (Geneva) PAMP Refinery
MMTC-PAMP Refinery
MKS (Sydney)
Precious Metal Trader Precious Metal Refiner Physical Precious Metal Products
Gold Trader Gold Refiner Physical Gold Products
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That is what we do.
Just Geography
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What is the fundamental difference with MKS?
What is different about MKS?
What is MKS’ true position in the market place?
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Physical Gold Supply
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Physical Gold Demand
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Trading Network
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360 Degree View of the Market
Physical Supply
Hedge Funds
Central Banks
Commercial Banks
Physical Demand
Speculators
Unallocated traders Trading Desks
Commodity
Exchanges
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Information is king
Puts MKS at the Forefront of the Gold Market
“It is our job to know who is doing what to whom and when”
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Unique Position in the Gold Market
• Creates opportunities
• Leads to innovation
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Maximising the Revenue Side for Gold Producers
Focus for producers:
• Cost side of the equation
• Operational efficiencies
Revenue is capped...? Yes & No
• Exploration & development & production
Revenue treated as Production Disposal
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What are the Traditional Revenue options for Gold Producers?
• Sell on outturn
• Risk Management Point of View
PRICE TAKER
Forward sale type strategies
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MKS Benchmark
2. We sell at a True spot average daily pricing
3. Daily publically listed independent Bloomberg price
1. Producer allocates their production to us for X amount of time
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MKS BENCHMARK True Average Pricing
True average better than basket of ASX average
Gold sold on outturn date
True average price
January December
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MKS Benchmark
• We manage the position
• We share the profits 50/50
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Traditional Model
REVENUE Gold Price at Some Point
REVENUE Average True Spot Price
MKS Benchmark Bonus??
MKS Benchmark Model
(Price Taker) (Managed Position)
MKS Benchmark
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MKS Benchmark Summary
• 50/50 split of trading margins above this true average
• A free call option
• We manage the risk
• Guaranteed to receive the True Average Gold Price
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A PACKAGE DEAL
• MKS manages the material from Mine-Site to Final Settlement
• Logistics
• Refining
• Revenue Side
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Cocktail drinks at 6pm in the exhibition area
MKS Exhibition Booth
Thank you